Performance Max is the newest challenge from the Google universe for many retailers. The challenge with PMax is grounded in the highly automated nature of the campaign type that makes it difficult for retailers to stick out with their products and Shopping campaigns and gain a competitive advantage. Bandel, a German automotive retailer, took on the challenge together with smec. The goal was to use Performance Max in the most effective way possible, all while keeping control over budget and campaign management.
To achieve this ambitious goal, we started by analysing Bandel’s existing Smart Shopping campaign setup as well as the competition and price data. We soon discovered that budgets have been spent on auctions with high competition or on products with unattractive prices. Hence we started our Enhanced Performance Max approach that includes:
- Switch from Smart Shopping to Performance Max campaigns
- Advanced campaign segmentation factoring in competition and market data
- Adding automation to ensure accurate budget and product allocation at all times
By combining Performance Max with sophisticated campaign segmentation and automation, Bandel was able to unlock a new level of cost-efficiency for their Shopping campaigns. Budgets are now only spent on products that create real value for the company. This is visible in the clear uplift of the value per click. One of the great results: For campaigns with a challenging price and high competition, there was an astounding 119% increase in the value/click.